(1) Field
The disclosed methods and systems relate generally to process control indicators, and more particularly to real-time indicators for improved performance process control in a manufacturing process that includes Isobutyl Alcohol (IBA).
(2) Description of Relevant Art
In a process plant, various processes are employed to produce amounts of a desired product. Traditional methods to measure general performance of manufacturing operations of a certain product include counting the amount of product produced over a certain period of time, and from that amount, calculating a cost per unit product. The cost per unit product is typically based on a standard cost function that is associated with the operation, often developed at the beginning of a fiscal time period, and utilized throughout that period. The cost per unit product is also often reported to manufacturing management to evaluate manufacturing performance, and often serves as a primary measure of manufacturing performance.
One disadvantage of measuring manufacturing performance by cost per unit product is the equal distribution and allocation of plant costs to each product or product line in the determination of cost per unit product, or alternately and additionally, cost allocation based on an algorithm that does not assign costs correctly. Often, costs in a manufacturing plant are not directly assignable to a product or product line, and therefore costs must be allocated based on other factors that usually have more to do with the perceived performance of the manufacturing operation than the actually occurring manufacturing practices.
Another disadvantage of measuring manufacturing performance by cost per unit product is that a considerable percentage of the costs in a manufacturing plant for calculating the cost per unit product, are not within the scope of manufacturing's authority; therefore, the performance measurement of cost per unit product leads to a “volume base” manufacturing approach that may not properly satisfy market and corporate requirements.
Furthermore, determining cost per unit product can be based on the amount of each product or product line produced, and this calculation may not be sensitive to problems incurred in the producing a specific product. For example, if a bad batch of a given product is produced and discarded, a standard allocation algorithm may not assign the costs associated with that batch to the specific product, and the costs are allocated to all products.
Other approaches to measuring manufacturing performance involve non-cost/non-financial measurements and include measurements of quality, delivery integrity, and customer satisfaction. These approaches are generally directed to the discrete manufacturing industry and involve collecting information and displaying results in a traditional daily, weekly, or monthly report format. Such approaches do not provide timely measurements to allow operations personnel to improve the process on which the measurements were made.
In manufacturing processes wherein Isobutyl Alcohol (IBA) is used, the cost of procuring and disposing of IBA waste can be a significant cost factor in the production of a product. One industry that utilizes IBA is the pharmaceutical industry. In a competitive market such as pharmaceutical manufacturing, competition can be extreme, especially in those commodity markets where pharmaceuticals are off-patent and can hence be manufactured by an FDA-approved manufacturer. These generic drug manufacturers can operate with a downward price pressure on their products and a critical need to control costs to achieve a reasonable profit margin.